Judge Throws Out Xethanol Derivative Suit

Law360, New York (August 20, 2007, 12:00 AM EDT) -- A federal judge has dismissed a putative shareholder derivative suit filed against Xethanol Corp., saying the plaintiffs should have filed a demand with the board of directors before bringing the case.

In his ruling Friday, Judge Harold Baer, Jr. of the U.S. District Court for the Southern District of New York said he disagreed with the plaintiffs' argument that making a demand on the board would have been futile.

The suit, which was filed in December 2006, alleged that former and current executives and board members...